Replies to post #20315 on Stargaze Entertainment Group Inc (STGZ)

[Drumstick]

Could you please simplify. You talk in circles. What exactly are the implications for umng. Is this good or bad, or does it matter.

[Lexit]

I have a feeling that Beny Steinmetz wants it all...and he can get the cash....Balla is out, long gone...adios...

Rio Ordered to Give Half of Guinea Concession to BSG (Update2)

By Jean Chua and Brett Foley

Dec. 11 (Bloomberg) -- Rio Tinto Group, the second-largest iron-ore producer, has been ordered by the government of Guinea to hand over half of the country’s Simandou deposit to a company controlled by Israeli diamond investor Beny Steinmetz.

Guinea ordered “a compulsory relinquishment of the northern half of the Simandou” concession, while confirming Rio’s right to the southern half, the London-based company said today in a statement distributed by the Regulatory News Service. Steinmetz’s BSG Resources took over the northern section, BSG Chief Executive Officer Marc Struik said today by phone from Johannesburg.

Rio complied with its obligations, is entitled to the entire license and is working with Guinea to resolve the issue, it said. Spokesman Nick Cobban said “block 1 and block 2” areas awarded to BSG are part of its northern concession. CEO Tom Albanese said in May Simandou was the world’s “top undeveloped” deposit.

Rio, which is struggling to cut debt by slashing 14,000 jobs and reducing capital spending by more than half, said yesterday it would postpone non-essential investments in Guinea. In August the company, which has been studying a $6 billion project to develop iron ore at Simandou, said Guinea’s president sent it a letter “purporting to rescind” a mining concession.

“If you don’t use it, you lose it and that is what happened here,” Struik said. “The government wants to see work being progressed and Rio stated yesterday they are putting the project on the backburner.”

BSG has been conducting drilling and exploration since 2006 in sites adjoining the concessions it was awarded yesterday by the government, he said. Steinmetz controls resources in the Democratic Republic of Congo, Sierra Leone and Macedonia, according to BSG’s Web site.

“We are confident our agreement with the government makes us the rightful holder of the whole of the Simandou mining concession,” Cobban said today by phone from London.

To contact the reporter on this story: Jean Chua in London at [e-mail]; Brett Foley in London at [e-mail]

Last Updated: December 11, 2008 13:01 EST

http://www.bloomberg.com/apps/news?pid=20601081&sid=a.ZToMqpbcLg&refer=australia#